Bahrain Compensation & Benefits

Your employees will typically care most about two aspects of employment — compensation and benefits. When you’re expanding to a new country such as Bahrain, you need to make sure you’re providing the right compensation and benefits that meet Bahrain’s laws and satisfy your employees. Globalization Partners will take care of Bahrain compensation and benefits outsourcing for you so that you can stay compliant and focus on growing a new business location.

Bahrain Compensation Laws

Bahrain’s compensation laws do not dictate a minimum wage, but the median salary is 1,534 BHD per month. However, 25% of the populations earns less than 781 BHD per month, while 75% make more than 781 BHD each month. Keep in mind that the country does not have a personal income tax, meaning net salaries offered to employees will typically look higher than in other countries.

Contract workers are also entitled to an “indemnity” at the end of their contract period. This amount is usually based on basic salary without any bonuses and serves as a “thank you” to expatriate workers serving Bahrain. It typically equals between 15 and 20 days of pay for an employee’s first three years of work then a month’s salary for each year of work after that.

Guaranteed Benefits in Bahrain

Your Bahrain benefit management plan must include statutory benefits guaranteed to all employees, including time off for the nine holidays celebrated in the country, as well as a minimum of 30 working days of paid annual leave. While the typical workweek is Sunday to Thursday, overtime should be paid at an additional 25% for anyone who works on weekend days and holidays.

Another guaranteed benefit is healthcare. Bahrain operates under a public/private healthcare system where citizens receive either free or heavily subsidized care. Foreign nationals can access the same plans but will have to pay for care and typically purchase their own health insurance.

Choosing the Right Bahrain Benefit Management Plan

If you do not choose Bahrain benefit outsourcing services, you’ll need to source your own benefit management plan that makes sense for your company. Then, you’ll have to disperse those benefits to all employees. In addition to the guaranteed benefits in Bahrain, you also need to give out additional benefits that can increase your retention rate and keep employees happy. Some common additions in Bahrain include:

Housing allowances

Transportation allowance

Utility allowances

And more

Restrictions for Bahrain Benefits and Compensation

The biggest restriction regarding benefits and compensation in Bahrain is that you must set up a subsidiary before you give out benefits. However, Bahrain compensation and benefits outsourcing through Globalization Partners can simplify the process. Instead of establishing a subsidiary before hiring employees and starting work, you can use our already established subsidiary in Bahrain. We’ll hire employees to work on your behalf, handle all Bahrain benefit and compensation outsourcing, and ensure you stay compliant.

Benefits of Partnering With Globalization Partners

Globalization Partners makes the expansion process easier, so you can focus on growing a company. Contact us today to learn more about our Bahrain compensation and benefit outsourcing services.

This material has been prepared for informational purposes only, and is not intended to provide, nor should you rely on it for, legal, tax, or accounting advice in any jurisdiction. You should consult your own legal, tax, and accounting advisors as part of your expansion plans.